Marketing 13th Edition by Gary Armstrong, Philip Kotler

Exercise 13

Fast-food chains are locked in a fierce battle that has them practically giving food away. McDonald's, Wendy's, Burger King, and others are constantly trying to lure customers at the low end of the price spectrum with tempting menu options thattcan serve as a snack or a meal. Although this technique is nothing new, it's more popular today than ever. The tactic has even found its way into full-service restaurant chains such as Olive Garden.
But are bargain-basement options a sustainable path for restaurant chains? This video takes a look at the various ways discount menus are executed. It also considers the reasons for using discount menu tactics as well as the possible negative outcomes.
After viewing the video featuring restaurant discount menu wars, answer the following questions:
Discuss why a restaurant chain might employ a discount menu as a pricing option.